ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - NYSE:BUD - US03524A1088 - ADR
61.29 USD
-0.3 (-0.49%)
61.29 USD
0 (0%)
Overall BUD gets a fundamental rating of 4 out of 10. We evaluated BUD against 33 industry peers in the Beverages industry. While BUD is still in line with the averages on profitability rating, there are concerns on its financial health. BUD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BUD was profitable.
BUD had a positive operating cash flow in the past year.
BUD had positive earnings in each of the past 5 years.
In the past 5 years BUD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.37%, BUD perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
The Return On Equity of BUD (8.82%) is comparable to the rest of the industry.
BUD has a Return On Invested Capital (6.35%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for BUD is below the industry average of 10.75%.
The last Return On Invested Capital (6.35%) for BUD is above the 3 year average (6.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROIC | 6.35% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
With a decent Profit Margin value of 12.16%, BUD is doing good in the industry, outperforming 78.13% of the companies in the same industry.
BUD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 26.51%, BUD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Operating Margin of BUD has declined.
The Gross Margin of BUD (55.70%) is better than 75.00% of its industry peers.
In the last couple of years the Gross Margin of BUD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
BUD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BUD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BUD has more shares outstanding
BUD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that BUD is in the distress zone and has some risk of bankruptcy.
BUD's Altman-Z score of 1.69 is in line compared to the rest of the industry. BUD outperforms 43.75% of its industry peers.
BUD has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as BUD would need 6.48 years to pay back of all of its debts.
The Debt to FCF ratio of BUD (6.48) is better than 62.50% of its industry peers.
BUD has a Debt/Equity ratio of 0.89. This is a neutral value indicating BUD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, BUD is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.02
WACC6.22%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BUD may have some problems paying its short term obligations.
With a Current ratio value of 0.64, BUD is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
BUD has a Quick Ratio of 0.64. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.48, BUD is doing worse than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.61% over the past year.
BUD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.83% yearly.
BUD shows a decrease in Revenue. In the last year, the revenue decreased by -2.35%.
Measured over the past years, BUD shows a small growth in Revenue. The Revenue has been growing by 2.69% on average per year.
EPS 1Y (TTM)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
3.2 Future
BUD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.96% yearly.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y6.07%
EPS Next 2Y9.91%
EPS Next 3Y10.78%
EPS Next 5Y9.96%
Revenue Next Year0.88%
Revenue Next 2Y3.15%
Revenue Next 3Y3.33%
Revenue Next 5Y4.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.92, which indicates a correct valuation of BUD.
BUD's Price/Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 71.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, BUD is valued a bit cheaper.
BUD is valuated correctly with a Price/Forward Earnings ratio of 13.71.
Based on the Price/Forward Earnings ratio, BUD is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
BUD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BUD is valued cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.26 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.62
PEG (5Y)N/A
EPS Next 2Y9.91%
EPS Next 3Y10.78%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.05, BUD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, BUD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BUD decreased recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BUD pays out 51.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y9.91%
EPS Next 3Y10.78%
61.29
-0.3 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.3%
Inst Owner Change-0.08%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap119.68B
Revenue(TTM)58.52B
Net Income(TTM)7.12B
Analysts83.13
Price Target79.76 (30.14%)
Short Float %0.99%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP51.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.01%
Max EPS beat(2)8.16%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)1.01%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)7.13%
EPS beat(12)12
Avg EPS beat(12)8.52%
EPS beat(16)14
Avg EPS beat(16)8.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-2.38%
PT rev (3m)-6.93%
EPS NQ rev (1m)-5.37%
EPS NQ rev (3m)-5.1%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)-1.81%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 13.71 | ||
| P/S | 2.05 | ||
| P/FCF | 10.26 | ||
| P/OCF | 7.88 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.86 |
EPS(TTM)3.85
EY6.28%
EPS(NY)4.47
Fwd EY7.29%
FCF(TTM)5.97
FCFY9.74%
OCF(TTM)7.78
OCFY12.69%
SpS29.97
BVpS41.31
TBVpS-38.52
PEG (NY)2.62
PEG (5Y)N/A
Graham Number59.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROCE | 8.71% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 76.01% | ||
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% | ||
| FCFM | 19.92% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexgc growth 3Y11.31%
ROICexgc growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 65.6% | ||
| Cap/Sales | 6.04% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 72.68% | ||
| Profit Quality | 163.87% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.69 |
F-Score7
WACC6.22%
ROIC/WACC1.02
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
EPS Next Y6.07%
EPS Next 2Y9.91%
EPS Next 3Y10.78%
EPS Next 5Y9.96%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
Revenue Next Year0.88%
Revenue Next 2Y3.15%
Revenue Next 3Y3.33%
Revenue Next 5Y4.2%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year39.9%
EBIT Next 3Y16.24%
EBIT Next 5Y12%
FCF growth 1Y56.54%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y19.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%
ANHEUSER-BUSCH INBEV-SPN ADR / BUD FAQ
Can you provide the ChartMill fundamental rating for ANHEUSER-BUSCH INBEV-SPN ADR?
ChartMill assigns a fundamental rating of 4 / 10 to BUD.
What is the valuation status for BUD stock?
ChartMill assigns a valuation rating of 5 / 10 to ANHEUSER-BUSCH INBEV-SPN ADR (BUD). This can be considered as Fairly Valued.
How profitable is ANHEUSER-BUSCH INBEV-SPN ADR (BUD) stock?
ANHEUSER-BUSCH INBEV-SPN ADR (BUD) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for BUD stock?
The Earnings per Share (EPS) of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is expected to grow by 6.07% in the next year.
How sustainable is the dividend of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) stock?
The dividend rating of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is 3 / 10 and the dividend payout ratio is 51.68%.